I agree with the sediments that for any company to come into existence in Australia it must be registered with Australian Securities and Investment Commission (ASIC). This is to mean that any company that is not registered with ASIC in Australia trades illegally. Just like any other nation ASIC gives companies in Australia a go ahead to trade. Besides, I also agree with the fact that a company which has limited liability, it members are not liable for any debts of the company in case of liquidation. However, the liability of the members is limited to the number of the shares owned. Ideally, this is to mean that the nominal value of the member shares that has limitation towards the company losses. As a fact, this makes the company a separate legal entity from its shareholders. The shareholders also have the right to sale their shares whenever they feel like (Picker 254).
Within the company, the shareholders do not run the business themselves; instead, they appoint representatives to run the business for them. The main aim of the management elected by the shareholders is to enhance efficiency within the company thus maximizing the shareholders wealth. In Australia, there are two main types of companies namely public and proprietary companies. The public Company is as per the sediments talked above where else proprietary companies are companies with at least one shareholder and at most fifty shareholders. The funny thing about the company is that it does not have the mandate to raise capital from the public. On the other hand, the public companies in Australia and elsewhere have the right to raise capital from the public if only they comply with the provisions of ASX (Deegan 326).
Work Cited
Deegan, Craig. Australian Financial Accounting. 4th ed. North Ryde, NSW: McGraw-Hill Australia, 2005. Print.
Picker, Ruth. Australian Accounting Standards. 2nd ed. Milton, Qld.: John Wiley & Sons Australia, 2009. Print.
